Cryptocurrency Wallet: the What, Why & How

Cryptocurrency Wallet: the What, Why & How

Cryptocurrency is a thing of today and is most definitely a thing of tomorrow. It’s not a new kid on the block anymore; it’s a legit way to do business, pay for your purchases, make and grow your investments. So far we’ve told you about the main benefits of using various cryptocurrencies and explained the whole idea behind the crypto verse, but how does it work on a daily basis? Like, where one keeps its digital currency and how are the transactions made? Let’s have a closer look.

Instant (and Cheaper) Crypto Transactions

All the transactions in the crypto verse are done using cryptocurrency wallets. What is a cryptocurrency wallet? It’s all in all a software that stores private and public keys and interacts with various Blockchains so that the users could send and receive digital currency and check their balance.

Why is it necessary?It’s faster, cheaper, and depending on the type, even safer than the existing systems. The main difference between a regular wallet and a crypto wallet is that the latter doesn’t store money. The only thing that exists, is the list of all the transactions stored on the Blockchain. For the Dagcoin users ‒ the DAG-chain.

There are Five Types of Wallets:

Desktop. The wallet is downloaded and installed on your computer. It’s accessible only from that specific device and therefore considered relatively safe.

Online. The wallet is stored in the cloud, hence the security is bit of an issue.

Mobile. Easy, accessible and quick to use. The only thing is the storage limit.

Hardware. The wallet is stored on physical devices such as USB sticks. Rather OK to use in regards to safety.

Paper version is a printout of your public and private keys. Highly secure.

How does it all work though? When someone sends you digital currency, they are signing off ownership to your wallet’s address. For you to spend those coins and unlock the funds, the private key stored in your wallet needs to match the public address the currency is assigned to. The magic happens aka the balance in your wallet increases and vice versa in other person’s wallet when those keys match. Read more about the cryptocurrency wallet.

DagWallet vs WebWallet

For Dagcoin users we have created our own wallet. It’s called a DagWallet. As the Dagcoin user community is growing vastly, we decided to create an app you guys can use on your desktop and/or smartphone to store and transfer your Dagcoins. It’s available for Mac, Android, Windows and Linux.

Additionally you can use it to check your wallet balance but bare in mind that the wallet only shows balance on that particular device, i.e., if you have two computers and two Android phones and the app is on all of the devices, it means you have four different e-wallets. Not to worry though, it’s all good stuff. It means you can scatter your assets and increase the level of security.

And WebWallet. What is that? This means your money is in the cloud. You can make and receive transactions and check your balance with all the devices you have. So, if you have, addition to two computers, two smartphones, and a DagWallet, also a WebWallet, you have five different e-wallets altogether.

If you’d ask which one of the wallets is safer, we would say DagWallet. Why? Because it’s not in the cloud. Being out there in the internet space makes it more vulnerable to malicious actions.

Be Part of a Network. Use Merchant Finder

It’s always great when you can cooperate with like-minded people and projects. Like, in this case, you can use your DagWallet to purchase products and services from designated shops via Merchant Finder.

It’s a delightful network that brings together fans of Dagcoin world wide. You can make an instant transaction to the company’s wallet while at the store, and it will cost only 0.0005 Dags. We wrote about the benefits of Merchant Finder in our latest blog. Have a look.

Hope this explains the subject of cryptocurrency wallet a little further. If you have any questions, do not hesitate to ask. We’re always happy to help.

Would you like to know more about the whole deal, transactions in the crypto verse and the future of digital currencies? Get in contact!